Katie MarsalMultiple reports this week are suggesting that iPhone talks between Apple and China's two most popular wireless carriers — China Mobile and China Unicom — have failed as a result of revenue sharing disputes. China Mobile, however, denies the claim.
"Previously, the company intended to cooperate with China Unicom, China's second largest mobile telecoms carrier, but the talks quitted due to the divarication on the sharing proportion of the proceeds," Trading Markets said on Tuesday.
That report was followed Friday by a similar one from the Chinese-language Southern Daily, which stated that negotiations between Apple and China Mobile, China's largest mobile phone operator by subscribers, had failed. The two parties couldn't reach an agreement because of differences over revenue sharing, the paper said.
For its part, however, China Mobile has denied the latest claim, insisting, according to Bloomberg, that it is still in discussions with Apple to offer the iPhone to Chinese consumers sometime in 2008.
Telecom executives familiar with the discussions between the iPhone maker and China Mobile had said earlier in the month that a number of contingencies on Apple's part were likely to prolong the process.
Specifically, there's a precedent among Chinese telecom operators that they do not, under any circumstances, agree to share their revenues with outside parties, as Apple has requested (and achieved) from all of its iPhone partners thus far.
"[O]ur business model does not entail sharing revenue with terminal producers — we don't share revenue. That's a Chinese rule," one executive told Reuters on condition of anonymity. "All it is right now, on the iPhone and Apple, is that the firm welcomes their approach."
Apple stated earlier this year that it hoped to launch iPhone in Asia during the 2008 calendar year.
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47 Comments
Frankly, Apple would be smarter to partner in China. In other words, buy their way in. With their cash on hand, they could make some smart investments that would pay huge dividends down the road. China is not the easiest market to enter, and for an 'arrogant' company like Apple, I'd bet the problems are much worse.
Specifically, there's a precedent among Chinese telecom operators that they do not, under any circumstances, agree to share their revenues with outside parties, as Apple has requested (and achieved) from all of its iPhone partners thus far.
"[O]ur business model does not entail sharing revenue with terminal producers -- we don't share revenue. That's a Chinese rule,"
Talk about arrogant...
One of the first rules in business, be flexible (both parties involved!).
It should be fun to see who dictates what to whom here.
Talk about arrogant...
One of the first rules in business, be flexible (both parties involved!).
It should be fun to see who dictates what to whom here.
The Chinese don't care a whit if Apple enters China or not.
Hey, if the Chinese telcos don't want to share profits, that's fine. It just means Apple will have to make their money entirely from the cost for the handset. So they'll all end up costing the equivalent of $1000 (just like the unlocked iPhones in Europe.)
Hey, if the Chinese telcos don't want to share profits, that's fine. It just means Apple will have to make their money entirely from the cost for the handset. So they'll all end up costing the equivalent of $1000 (just like the unlocked iPhones in Europe.)
I completely agree with your comment. No need to fight it out.....